Elliott Wave update EUR/USD 6 May 2010

Author

Ramki
May 05, 2010

When a significant target is reached one should step back and look at the bigger picture again. Elliott wave analysis of EUR/USD suggests that the decline from 1.5144 finished its first wave at 1.4216. The second wave retraced 38.2% only (suggesting that the next sell off could be a lengthy one). The third wave travelled from 1.4582 to 1.3432, covering a distance that was exactly 1.236 times wave 1.  Clearly, the third wave did not extend. That meant the fifth wave has a higher chance of becoming an extended wave, and this is what is happening. (The fourth wave went from 1.3432 to 1.3817, covering a distance equal to the 2nd wave). With this background, you should now be able to understand how I am currently inclined to label the extending fifth wave. If you like this work, share it with your friends and they will thank you for that.

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